Evening Star Newspaper, December 10, 1935, Page 5

RULINGS UPHOLD POWERS OF STATES H. 0. L. C. and Liguor Tax Decisions Rule Rights Invaded by U. S. One act of Congress was nullified and another voided in part by the Supreme Court yesterday in strongly worded opinions declaring both to be invasions of State rights. Justice Cardozo, classed among the court’s liberals, reported the unani- mous belief of the tribunal that a section of the home owners’ loan act of 1933 could not be interpreted as authorizing State building and loan associations to acquire Federal char- ters against a State's wishes. Justice Roberts read a 6-to-3 de- | cision that the Federal Government could not impose a special tax on liquor manufacturers and dealers who operated in States which remained dry following repeal of prohibition. The H. O. L. C. case involved an eppeal by three Wisconsin associa- tions against a State Supreme Court ruling that failure to cbtain State permission barred them from obtain- ing Pederal charters —even though | their stockholders approved the move. U. S. Aided Associations. While the Government was not a direct party in the case, H. O. L. C. lawyers argued as a “iriend of the court” that a section of the act au- thorized such conversion, even over State objections, in the interest of | the “general welfare.” Of significance to some lawyers. involving a question as to whether some members of the court possibly | might feel that conversion, even with | State permission, was qummmblfl i was this paragraph: H “Confining ourselves now !0 the precise and narrow question presented upon the records here before us we hold that the conversion of peti- tioners from State into Federal asso- ciations is of no effect when voted against the protest of Wisconsin. Be- yond that we do not go.” H. O. L. C. officials. however. took the view that this was a definition of the decision’s scope, rather than any indication of possible private discus- | sion by the justices of the entire pro- | gram. The Federal Home Loan Bank Board, in a statement last night. em- phasized that the court's decision actually affects only three Wxsconslm building and loan associations | U. S. Encroachment Hit. These were converted into Federally chartered institutions against the State's protest, after operating orig- | inally under ‘State charters In the home loan case Justice Car- dozo asserted “there has been an ille- | gitimate encroachment by the Gov- | ernment of the Nation upon a domain | of activity set apart by the Constitu- tion as the province of the States.” | ‘The opinion said: | “The home owners’ loan act. to the | extent that it permits the conversion of State associations into Federal ones in contravention of the laws of the place of their creation, is an unconsti- | tutional encroachment upon the re-| served powers of the States.” The liquor decision was or appeals | in cases against Gus L. Constantine of Birmingham and Bernord Roberts and Roger Kesterson of Tulsa. The tax of as much as $1,000 on illicit dealers in | dry States was imposed under a 1926 Tevenue law. Holding that the purpose of the tax was to “impose a penalty as a deter- | rent and punishment of unlawful con- | duct,” Roberts said it is a “clear eva- | sion of the police power, inherent in the States, reserved from the grant of powers to the Federal Government by the Constitution. State Maximum Applies. “We think the suggestion has never been made—certainly never enter- | tained by this court—that the United | States may impose cumulative pen- alties above and beyond those specified | by State law for infractions of the | State’s criminal code by its own citi- gens. “The affirmation of such a proposi- tion would obliterate the distinction | between the delegated powers of the Federal Government and those re- served to the States and their citizens. | ‘The implications from a decision sus- taining such an imposition would be | startling. i “The concession of such a power ‘would open the door to unlimited reg- ulation of matters of State concern by Federal authority. The regulation of the conduct of its own citizens be- longs to the State—not to the United States. The right to impose sanc tions for violations of the State's laws in- heres in the body of its citizens, | speaking through their Representa- tives. So far as the reservations of | the tenth amendment (reserving spe- cific powers to States) were qualified by the adoption of the eighteenth amendment, the qualification has been abolished.” Cardozo Delivers Dissent. Speaking also for Justices Brandeis | and Stone, Justice Cardozo delivered | & dissenting opinion which quoted | from a previous decision that “one branch of the Government cannot en- | croach on the domain of another without danger.” He added: “I cannot rid myself of the convic- tion that in the imputation to the lawmakers of a purpose not professed, the salutary rule of caution is now forgotten or neglected after all the many protestations of its cogency and virtue.” “Congress may reasonably have be- lieved,” Cardozo said, “that, in view of the attendant risks, a business carried on illegally and furtively is | | | taxpaver | As time draws near for the big parade Saturday, marching to the Warner Bros.’ theaters with toys for poor little boys and girls, old Santa Claus reminds his friends that Christmas shopping days are at hand—and asks them to get on the job. JENING ST Santa Claus Broadcasts From Toyland AR, WASHINGTON, D. G, TUESDAY, ties of its postponement, Vasconcel- los told the Associated Press: & “The object of the session of the committee of 18 was to see whether conditions had been realized which were necessary for making effective an embargo of iron, coal, oil and steel.” Critical Stage Reached. If peace negotiations were under way, he said, this would naturally af- fect the situation. All authorities conceded that the | situation arising from Italy’s war on Ethiopia had reached a crisis as & result of the proposals for peace, based on an exchange of territories, drawn up by France's Premier Pierre Laval and Britain's Foreign Secre- tary Sir Samuel Hoare. The special session of the League Council was called .primarily to dis- cuss a transfer of some 25,000 As- syrians from Iraq to Syria. If peace negotiations were started with Italy, however, the Council must be consulted. PLAN APPROVAL WITHDRAWN. Commons Revolt Forces Negotiation Renewal. LONDON, December 10 (P)—A sharp revolt breaking through the ranks of the Conservatives in the House of Commons forced the govern- ment today to hastily withdraw ap- proval of a Franco-British plan for Ethiopian peace and reopen the nego- tiations with Paris. Attempting to avert a threatened political crisis, with opposition re- ported even in the cabinet itself, the government ordered the British Am- | bassador to Paris, Sir George Russell Clerk, to explain the British situation 1i v to yield larger profits than one transacted openly by law-abiding men * * “A business that is a nuisance, like ther business that is socially ungd able, may be taxed at a higher rate than one legitimate and useful. By classifying in such a mode, Con- gress is not punishing for a crime against another government, it is not punishing at all. It is laying an ex- cise upon a business conducted in a particular way with that that business, he will be subject to a special burden.” S;nla (Continued From First Page.) d"en of the poor to learn that Santa s plays favorites. \Hzo believes that little boys and girls Christmas? Many mothers today are concerned with this problem: How to get toys and clothing for their children at Christmas? The Star is trying to help out in such situations. With the aid of the Warner Brothers’ Theaters and the National Broadcasting Co. all the good folk of the city are being enlisted in the campaign to provide toys—and clothing—for the unfortunate children whose fathers are out of work. For children whose mothers are their only support. For children who have neither fathers nor mothers. Time works strange tricks. Last Christmas might have been a real Christmas in homes that this year feel the pinch of poverty—the clammy hand of destiny on the door- knob. Fate deals some strange hands in that card game they call life. Nobody is immune. Fortune is fickle. The poor this year may have been reason- ably wealthy this year—and next year, only the rich should enjoy | who kno So, old Santa Claus, contemplating the ever shifting scene, sends a little message to each one of us who has slightly more than we need: Help out some of the poor unfortunates. Please! ‘Where the Pinch Is Felt. If each one of The Star readers were privileged to peep behind the mystical | curtains that enshroud individual | homes some sorry sights might be seen, but the saddest of all would be those homes where poor mothers bend over cribs at night, crying, because their little ones are being left out in the cold—so to speak. Nobody is going to be left out in the cold if old Santa Claus can have his way. That old fellow knows some- thing. He said only this morning: “You fellows who are working to drum up enthusiasm for this toy cam- New low fares now in effect notice to the | if he embarks upon! cold, | paign must not be discouraged. Right now things might look black, but you'll see that the great mass of persons in Washingten will come through. I believe that every man and woman who thinks about it at all will see that no child is forgotten this Christ- mas."” Santa Claus. you see, is sort of “on the spot.” He has to have help. If he does not get direct aid from Wash- ingtonians he will be unable to place toys—and clothing—where they are needed most. And if the old gentle- man neglects several hundred poor boys and girls this Christmas these little Americans may be bitter in their hearts, feeling that there is no Santa Claus. All the old-timers know there is a Santa Claus, of course; because Santa Claus visited them in years gone by. Some of these poor little children | today, however. have heard a lot about Santa Claus, but have never | felt his presence. Naturally, they are | watching and waiting for him—hoping | he will bring them presents on Christ- mas day. If he does not, well But he will. Santa Claus is com- in: and Christmas is going to be a happy day in many homes that have had hard sledding until now. Why? Because men and women who have been through the mill themselves are determined to help out in this| emergency. 4 Great Toy Round-up. On Seturday morning, in all the Warner Bros' Theaters, there will | be the great round-up of toys. Any | one who brings a new toy to any of | these theaters—Ambassador, Tivoli, | Savoy, Avalon, Colony, York, Avenue | Grand, Apollo, Home, Earle and Am- | bassador—will gain free admission. John J. Payette, zone manager for | the Warner Brothers, has arranged e | glorious array of motion-picture en- | tertainment, featuring such stars as Sent toyou on | misery | alties against Italy, Shirley Temple, Jackie Cooper, Richard Dix. young Freddie Bar- | tholomew and others. | Shows in the neighborhood theaters will start at 9 am, next Saturday and in the downtown theaters—Earle and Metropolitan—at 10 a.m. Here is your chance to help Santa | Claus and, at the same time, get the first glimpse and taste of the Christ- mas spirit—for kids from all over | town will flock to those theaters next Saturday morning. And what a sight that will be—thousands of Santa Claus’ little helpers, all carrying toys. There are at least 5000 homes that need to be furnished with toys—and | clothing. Think of that. It means | on Christmas day unless the kind-hearted rally to this appeal. | Let’s be generous and lend a helping | hand. Sanctions (Continued From First received no request thus far for a change in the date of the session Baron Pompeo Aloisi of Italy was expected to attend the special ses- sion of the League Council, convoked for December 17, officially to discuss the Assyrian refugee problem, but also, many observers believed, to con- sider the Italo-Ethiopian crisis. This would provide an opportunity for Premier Mussolini's representative to discuss terms for East African| peace with members of the League Council in private conversations. The League's permanent general staff, surveying operation of war pen- met today tq draw up a report for Dr. Vasconcel- los. Referring to the projected meeting of the Committee of 18 and possibili- | ions for consultation Page) | | minister for League of Nations affairs, | intended to resign. | ing. to Paris officials and seek modification of the plan. In parliamentary circles it was stated the strong stand against the government's program was brought on by what was described as a proposal to permit Premier Mussolini of Italy to virtually dictate “conqueror’s terms” upon Ethiopia. Baldwin Attacked. Prime Minister Stanley Baldwin, vehemently attacked in Parliament by the opFosition, refused to reassure the members that the government was still upholding the principal that the ag- gressor would not be rewarded for ag- | gression. The position of Anlhnm Eden, Brit- ish minister for League of Nations affairs, was not clarified. It -had been rumored he would resign because of his strong disapproval of the plan of Foreign Secretary Sir Samuel Hoare and Premier Laval of Prance. The foreign office summoned high commissioners of the British domin- Maurice Peterson, foreign office ex- pert on Ethiopia, was ordered to re- turn to Paris to reopen his negotia- tions with French experts on the Ethi- opian question. Cabinet Rejection Seen. ‘The resumption of negotiations lent | credence to reports the cabinet. meet- | ing in an emergency session, had sum- | marily rejected the tentative agree- | ment previously proposed. This agreement had been reached in conversations betwecn Hoare and Laval in Paris. As the cabinet met in an emergency session again to discuss the peace pro- posals, the strictest official silence was | maintained on overnight develop- | ments, which included rumors, later| denied, that Anthony Eden, British Combating the Pain of Arthritis Thousands suffering from arthritic pains have found relief in Mountain Valley Min- eral Water direct from famous Hot Springs, Arkansas. Mildly alkal Deeply satisfy- Naturally coreceiive. Ingorsed by Dy sicians for over 30 vears. 'Phone for booklet. 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